(ed: This article has been modified to reflect additional information we received from Carphone Warehouse.)
We just got hold of a document that shows that Carphone Warehouse will sell around a dozen entry level smartphones/feature phones on contracts and will give away 16GB HP TouchPads as free gifts. Interestingly, all the handsets will be on O2 (as far as we can see).
The cheapest package is the Nokia 1800 with 100 minutes, 500 texts on a two year contract for £15.50/month. Next is the Samsung Galaxy Apollo with 50 minutes, 250 texts and 1GB data for £20.50/month, next up is the Tocco Lite/Nokia 6303i or the Nokia C3-00 for £21/month with 300 minutes and unlimited texts.
Further up the price ladder is the Blackberry 8520 with 200 minutes, unlimited texts and 500MB data at £27. For the same outlay you can also get the Sony Ericsson X8 or the Nokia C3-01 with an additional 100 minutes. For £32 per month, you will get either the Blackberry 9300, Samsung Ace or the HTC Wildfire S with 600 minutes, unlimited text and 500MB data. These new data plans should go on Carphone Warehouse fairly soon we've been told.
Is it worth it? Well, given that all PAYG phones from Carphone Warehouse are SIM Free, the Nokia 1800 can be had from CPW from £19.95 (including a £10 top-up) with a comparable SIM-only package costing around £120 over two years which means that you would be paying an extra £232 for the tablet.